Perry pushing hard for school finance reform before campaign

Before he asks for Texans' votes for his 2006 re-election bid, Perry is campaigning for passage of a public school finance plan now that he's called the Legislature back into session.

Besides huddling at the Capitol with fellow Republican leaders, Perry has traveled the state stumping for his education proposal. He's even spending $400,000 of his own campaign money for statewide radio ads urging legislative results.

Associated Press

Texas Gov. Rick Perry is shown during a news conference, Friday, July 1, 2005, in Austin, Texas. Before he asks for Texans' votes for his 2006 re-election bid, Perry is campaigning for passage of a public school finance plan now that he's called the Legislature back into session.

It's an all-important undertaking for the governor, who faces a Republican primary challenge next year from Comptroller Carole Keeton Strayhorn. If lawmakers don't reach a school solution, Strayhorn is sure to keep attacking Perry over it, alleging lack of leadership.

It also could be a tough political position for Perry if Texas is forced into school funding action by the Texas Supreme Court, which heard arguments Wednesday in a lawsuit between school districts and the state.

Perry's aides insist election-year concerns aren't his motivation.

Perry's plan

Republican Gov. Rick Perry, who has called lawmakers into a 30-day special legislative session on education funding, put forth his own school finance plan as the session started. Here's a look at some of the main elements of his proposal:

Closing loopholes in the franchise tax on businesses.

Raising the cigarette tax by $1 per pack, up from 41 cents.

Increasing the state sales tax from 6.25 percent to 6.95 percent.

Increasing the homestead exemption by $7,500 to $22,500 starting in 2007.

Cutting the school property tax rate to $1.20 by 2007 and capping rate at $1.05 by 2010, though without funding after 2007.

"Politics does not play a role here for the governor," said spokesman Robert Black. "This is about what's best for our kids and our schools."

In June, Perry took a major political risk and used two of his biggest powers as Texas governor: the veto and the ability to call a special legislative session. Perry vetoed $35 billion in public education funding and called a 30-day special session.

He proposed his own school funding plan, describing it as a compromise between the plans approved by the House and Senate in the spring regular session. The two chambers never agreed on middle ground.

Among other things, Perry called for closing loopholes in the franchise tax on businesses, raising the state sales tax from 6.25 percent to 6.95 percent and increasing the cigarette tax by $1 per pack, all to offset property tax reductions.

Then Perry began using what he calls the bully pulpit of the governor's office. He traveled to 11 cities in three days - from big cities like Dallas to smaller places like Nacogdoches and San Angelo - to push his plan in public appearances.

Critics of Perry's proposal, including Strayhorn and Democrats, say it won't raise the money it promises or that is doesn't strike a fair balance between businesses and consumers.